c. Julie paid $5,600 to the day care center and her AGI is $126,500 (all salary).

d. Julie paid $3,600 to the day care center and her AGI is $401,500 (all salary).

e. Julie paid $5,600 to the day care center and her AGI is $14,000 ($3,600 salary and $10,400 unearned income).

EXHIBIT 8-10 Child and Dependent Care Credit Percentage 50% If AGI is over But not over Then the percentage is S 0 $125.000 125,000 127,000 49 127,000 129,000 48 129,000 131,000 47 181,000 183,000 21 183,000 400,000 20 400,000 402,000 19 402,000 404,000 18 434,000 436,000 2 436,000 438,000 1 438.000 0 Source: Source: Internal Revenue Code. "$ 21. Expenses For Household And Dependent Care Services Necessary For Gainful Employment